A Long-Term, Unconstrained Philosophy
Baillie Gifford’s Long-Term Global Growth (LTGG) strategy exemplifies a distinctive approach to investment management, rooted in a very long-term mindset and a deep commitment to finding the world’s most promising growth companies. With approximately USD 50 billion in assets under management under this strategy, and USD 270 billion across the firm, Long Term Global Growth has built a reputation as a forward-looking, benchmark-agnostic investment strategy.
The LTGG strategy is global, concentrated, and completely unconstrained by benchmarks for over twenty years now. Although clients may choose to measure performance against indices such as the MSCI All-Countries or FTSE All-Share, the investment team builds portfolios independently of any benchmark considerations.
Typically holding 30 to 60 companies, the strategy currently holds around 38 to 40 positions, selected on their ability to deliver exceptional growth over the long term. An interview with Tatjana Evans-MacLeod, Senior Director at Baillie Gifford. “We will of course get things wrong, but the asymmetry of return is our ace card – i.e. we know that we only need a few exceptional companies to drive the generate exceptional returns for our clients. Compound growth is incredibly valuable but the fruits of it accrue to investors who demonstrate patience,” she starts off by saying.
Beyond Tech: A Broader View of Growth
While technology is often central to growth investing, Baillie Gifford’s portfolio reflects a more nuanced view and is sector-agnostic. “Opportunities can be found anywhere,” says Evans-MacLeod.
Holdings include luxury brands like Hermès, which has been in the strategy since its inception in 2003, as well as technology leaders like Nvidia and Netflix. This diversity underscores the team’s belief that long-term value is driven less by sector biases and more by visionary leadership, culture, and alignment between management and shareholders.
“Founder-led or founder-influenced businesses are particularly attractive to the team, especially when they exhibit resilience and a long-term outlook unconstrained by quarterly earnings cycles”, she says.
A Collaborative, Research-Driven Process
Baillie Gifford’s LTGG team consists of eight to ten members, including five core decision-makers and 3 analysts. Uniquely, everyone on the team—portfolio managers included—is considered an analyst. Rather than assigning sectors, the firm encourages its analysts to pursue ideas wherever they see potential. This fosters a collaborative, idea-rich environment.
Every investment must pass through a proprietary 10-question research framework. These questions probe the company’s long-term potential, asking things like “Can sales double in the next five years?” and “What is the enduring competitive advantage?” Even after an investment is made, each company is reassessed regularly against this framework. If a business no longer meets expectations, the team considers trimming or exiting the position.
All portfolio companies must also meet a minimum market cap of $4 billion—microcaps are thus not eligible for investment.
Portfolio Day 2025
Tatjana Evans-MacLeod will speak at Portfolio Day about “How to find great growth companies capable of being outliers over time”. Come to Portfolio Day 2025 on Wednesday, June 11 and be inspired. The event is Dutch and English speaking.
Thinking in Years, Not Quarters
A defining characteristic of the LTGG strategy is its emphasis on long-term thinking. While much of the market focuses on quarterly forecasts, Baillie Gifford devotes its research to what happens in years three to ten. “The belief is that the market systematically underestimates the power of compounding growth over the long run—and that’s where the greatest opportunities lie.”
This long-term lens also applies to macroeconomic events. Whether it’s the Global Financial Crisis, political turbulence, or inflation spikes, the team avoids reacting to headlines. Instead, the focus remains on building a resilient portfolio composed of businesses with strong balance sheets, high margins, and fast-growing revenues. On average, portfolio companies are net cash, have double the gross margins of the index, and deliver top-line growth five times higher than the broader market.
Over the last two decades, the LTGG strategy has outperformed the MSCI AWCI benchmark by 2.5 times. This track record is especially notable in an industry where only about 2% of large cap growth managers have consistently delivered such outperformance over a similar period.1
Source: Baillie Gifford 07/04/2025 denominated in USD
“This consistency speaks to the strength of the team’s investment process and its disciplined commitment to long-term thinking,” Evans-MacLeod asserts.
A Future Defined by Innovation
Looking ahead, Baillie Gifford remains optimistic despite current market turmoil. The firm uses its own lens to categorize portfolio holdings, focusing not on traditional sector labels but on contentions about future structural growth drivers. Key areas of opportunity include:
- Fintech will disrupt traditional financial service providers, with names like Adyen, Mercado Libre and Nubank.
- Renewable technologies will gain share in transportation and energy markets, where companies such as Enphase and Rivian are seen as long-term winners.
- Demand for powerful chips will continue to grow, ASML, NVIDIA and TSMC.
Although the strategy is unconstrained, Baillie Gifford does maintain a few key portfolio construction guidelines: a maximum 10% allocation to any single company, holdings across at least six countries and six different growth drivers. This ensures appropriate diversification without compromising the high-conviction nature of the portfolio.
“As Baillie Gifford continues to refine and evolve its Long-Term Global Growth strategy, it remains committed to its founding principles: deep research, imaginative thinking, and the belief that the best investments are those that unfold over decades, not quarters,” she concludes.
Additional information can be found on their dedicated webpage: https://www.bailliegifford.com/en/netherlands/professional-investor/investment-strategies/long-term-global-growth/
1https://advisor.visualcapitalist.com/success-rate-of-actively-managed-f…